Solar Rebates and Incentives for the Dallas-Fort Worth Metro Area
October 23, 2017
The Dallas-Fort Worth (DFW) Metroplex is one of the fastest-growing, most innovative places in America. What’s more, it’s becoming increasingly easier to go solar in this area.
Federal Solar Rebates and Incentives for DFW
Texas offers a range of solar power incentives starting on a federal level, which of course apply to DFW along with every other city in the state. The Solar Investment Tax Credit (ITC) is the most well known. It’s a dollar for dollar reduction on your income taxes when purchasing any solar equipment.
Since Congress passed an omnibus bill that extended the tax credit for two years, you can receive a 26% tax credit for any solar project installed in 2021 and 2022. It’ll decrease to 22% in 2023, then to 10% in 2024 and beyond. However, come 2024, the tax credit will no longer apply to residential solar projects, only commercial ones.
State and Local Solar Rebates and Incentives for DFW
Most utilities in DFW offer rebates to homeowners and business owners on a price-per-watt basis that’s usually capped at a maximum amount per project installed. Funds are released on a periodic basis, such as by the year, or in perpetuity.
All utility programs, rebates, and incentives (including loan programs) have an application process that your solar installer can help you manage.
Net metering is a billing arrangement between a utility company and a property owner. It allows the excess energy that your solar system produces to be sold back to the city’s grid. The money you earn is usually applied as a credit on your next billing cycle.
While many utilities in Texas will handle the interconnection and meter measuring of your solar energy device, your Retail Electric Provider (REP) oversees billing. Net metering in the DFW Metroplex is available through TXU, Reliant, AEP Texas North, and Green Mountain Energy.
For example, AEP Texas North offers local solar owners up to $0.70 per watt in net metering credits, with a maximum of $7,000.
Oncor offers a residential rebate of up to $5,000 for installing solar panels in Dallas. Additionally, every Oncor customer is eligible for a rebate of up to $4,500 on a solar system by switching to Green Mountain Energy in coordination with the installation. That discount means you can save money on your monthly electric bill for a fraction of the sticker price, no matter where you live in the DFW area.
If you live in Garland, you can earn up to $2,000 worth of credits in your GP&L account through a residential solar panel installation.
Denton Municipal Electric offers a solar rebate for homeowners to save up to $10,000. Business owners, which have a higher electric demand, are eligible for a rebate of up to $30,000 for their PV system. Denton also offers an additional incentive for installing a solar energy storage system along with your solar panels.
Solar and Wind Energy Business Franchise Tax Exemption
The Solar and Wind Energy Business Franchise Tax Exemption is a financial incentive for commercial and industrial sectors.
Texas companies that solely engage in the manufacturing, selling, or installing of solar equipment are exempt from franchise tax. The franchise tax is equivalent to a corporate tax in Texas, and this exemption in particular has no maximum cap.
LoanSTAR Revolving Loan Program
The LoanSTAR Revolving Loan Program is a low-interest revolving loan program that will finance any energy-related costs for state, college, university, public school, and nonprofit hospital facilities.
This financial incentive relates to solar energy byway of on-site energy-efficient lighting systems and solar PV systems. All LoanSTAR projects are required to be analyzed by a professional engineer as well as meet other select technical guidelines. The payback period is 10 years or less.
Renewable Energy Systems Property Tax Exemption
The Renewable Energy Systems Property Tax Exemption is a property tax incentive for the residential, commercial, and industrial sectors.
The exemption amount covers 100% of the appraised property value increase of the installation or construction of a solar energy device. Any energy generated from the system needs to be for on-site use or stored in on-site devices such as a battery or Tesla PowerWall.
Solar and Wind Energy Device Franchise Tax Deduction
The Solar and Wind Energy Device Franchise Tax Deduction is a financial incentive for the commercial and industrial sectors.
Texas allows corporations to deduct the cost of their solar energy device from their franchise tax in only one of the following ways:
- The system’s total cost can be deducted from the company’s taxable capital.
- 10% of the system’s cost can be deducted from the company’s income.
Solar Rights Law
Although it’s not necessarily a financial incentive, Texas has a solar rights law. If you live in a neighborhood that’s governed by a Homeowners Association (HOA) and you’re concerned about regulations holding you back from going solar, worry no more.
Texas’s solar rights law prevents HOAs from banning the installation and use of solar energy systems on properties. You can confidently go solar and gain energy independence without any HOA restrictions holding you back.
[Related: What to Know Before Installing Solar Panels]
Contact Freedom Solar to Learn More
If you’d like to learn more about solar rebates and incentives, or if you’re ready to start harnessing solar power, contact us today. Call Freedom Solar at +1 (800) 504-2337 or complete our inquiry form and one of our solar specialists will be in touch!
* Tax credits are subject to change. Consult your tax advisor regarding how incentives and rebates apply to your specific circumstances. Visit the DSIRE website for detailed solar policy information. We do not provide legal or tax advice.